About 35 minutes into trading the Dow Jones Industrial Average was at 23,989.95, up 1.9 percent.
The broad-based S&P 500 climbed 1.8 percent to 2,633.87, while the tech-rich Nasdaq Composite Index was at 7,131.20, up two percent.
Analysts cited talks reportedly underway between top Chinese and US officials that could avert a much-feared trade war after President Donald Trump announced tariffs on as much as $60 billion of Chinese imports.
US officials have laid out specific requests for the easing of Chinese restrictions on autos and better US access to the financial sector in China, according to The Wall Street Journal.
Financial shares rose sharply, including JPMorgan Chase, Goldman Sachs and Bank of America. All jumped more than three percent.
Most technology shares gained, including Apple, which won 2.8 percent and Microsoft, which advanced 6.0 percent following a positive note from Morgan Stanley.
But Facebook continued to struggle amid criticism over its consumer data practices, falling two percent.